Fintech firm Niyogin, which is listed on the BSE (previously called Bombay Stock Exchange and located at Datal Street, Mumbai), has acquired a majority 51% stake in iServeU for INR 592 million (appr. $8 million) in a cash and stock deal.
Niyogin aims to develop a comprehensive all-digital platform for India’s financially underserved residents. The company has been focused on scaling its operations and continues to offer various wealth, credit, and software-as-a-service (SaaS) products in order help small businesses with their digital transformation strategies.
iServeU focuses on enabling greater financial inclusion. The company aims to assist small village merchants with providing services to local communities through a digital platform.
iServeU claims that it’s currently handling about $500 million in transactions annually. The company’s management noted that more people are using its services as the number of transactions have increased during the pandemic. Like many other countries, India had also introduced lockdown measures, which forced many physical business locations to shut down.
iServeU notes that residents of rural communities began to use its services during the lockdown period.
The acquisition should help Niyogin further develop and offer key financial services to India’s underbanked residents. The Fintech firm provides credit, digital wealth, and payments products. Amit Rajpal, chairman and co-founder at Niyogin Fintech, said that the acquisition will help the company with offering more comprehensive Fintech services.
“We welcome iServeU and the team to the Niyogin family. They bring with them a unique platform, reach, and experience that will be of immense benefit to Niyogin. We continue to make strategic investments in effectively using technology… Niyogin’s capabilities combined with iServeU’s digital platform … will [help us assist the financially] underserved … and allow us to expand [our] product stack and addressable market.”
Debiprasad Sarangi, co-founder and CEO at iServeU Technologies remarked:
“We see Niyogin as a long-term strategic partner and are excited about what Niyogin and iServeU can deliver jointly to rural customers and micro-businesses, transform communities, leverage technology to empower people and accelerate much needed financial-inclusion in India. The capital [injection] will be used to scale and accelerate growth.”
The acquisition is subject to regulatory approval and other customary closing requirements. As first reported by CNBCTV18, Equirus Capital served as the financial advisor to iServeU for this deal.
Niyogin provides both credit and non-credit products including a digital wealth solution, called “Moneyfront.” The company claims that it has more than $100 million in assets under management (AUM).